• VC deals with disclosed funding rounds down 28.9% YoY during H1 2023
• Early-stage funding rounds volume account for 76.4%
• Late-stage funding rounds conspicuously absent

A total of 2,445 venture capital (VC) deals with disclosed funding rounds were announced during the first half (H1) of 2023, which was a year-on-year (YoY) decline of 28.9% over the 3,439 VC deals announced during H1 2022, reveals GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, says: “Both early-stage (Seed and Series A funding rounds) as well as growth, expansion and late-stage (Series B onwards) funding rounds experienced decline in H1 2023 compared to H1 2022 and drove the overall decline. However, the impact was more prominent for growth, expansion and late-stage.”

An analysis of GlobalData’s Financial Deals Database revealed that the total volume of the early-stage funding rounds declined by 26.8% from 1,867 to 2,551. Meanwhile, the total number of growth, expansion and late-stage funding rounds decreased by 34.9% from 888 in H1 2022 to 578 in H1 2023.

Bose adds: “Notably, H1 2023 witnessed the absence of late-stage funding rounds (Series H, Series I and Series J) within the APAC region.”

Early-stage funding rounds, despite the decline, continued to dominate the APAC VC funding landscape in terms of volume. These funding rounds accounted for 76.4% share of the total number of VC deals with disclosed funding rounds announced during H1 2023.

Growth, expansion and late-stage funding rounds collectively accounted for 23.6% share of the total number of VC deals with disclosed funding rounds announced during H1 2023.

Bose concludes: “As the APAC VC landscape undergoes shifts, the decline in both early-stage as well as growth, expansion and late-stage funding rounds in H1 2023, coupled with the conspicuous absence of late-stage rounds, reflects a strategic shift. These dynamics underscore the adaptability and evolving strategies of investors, paving the way for a recalibrated industry outlook.”